Is Using Hard Money for a Down Payment a Bad Idea?

[Jen Stekkinger]

I ran across an amazing deal on a duplex far below market and appraisal value. Only I dont exactly have the 20% down payment to purchase the property. The seller will not finance. Because I have a new mortguage (not enough equity) I need to wait one year. I could make the purchase as a second home and I was thinking of doing a hard money loan for 40K.  The hard money loan would be 6months used as a down payment. My bank would re-fi and pick up the loan in July. Is this an ok thing to do or are there issues I need to consider? Did anyone else finance this way? Or is this way to risky?